Dapps (Decentralized apps)
A decentralized application, commonly referred to as a dApp, is an application that uses smart contracts on a blockchain to perform part of its function. Unlike a traditional app that runs mainly through company-controlled servers, a dApp often uses blockchain code to manage token transfers, swaps, lending, borrowing, games, governance, or digital collectibles. Users can access dApps via a website or interface and connect a compatible crypto wallet to sign transactions. The blockchain component records activity and enforces smart contract rules according to the protocol design.
Uniswap is an example of a decentralized application. A user can connect a compatible Ethereum wallet to Uniswap, choose ETH and USDC, and approve a swap that is processed by Uniswap’s smart contracts instead of a traditional exchange.
Highlights
- Applications that run on blockchain instead of centralized servers.
- Operate autonomously using smart contracts.
- More resistant to censorship and hacking.
Frequently Asked Questions
What makes DApps different from traditional apps?
Unlike traditional apps, DApps are powered by smart contracts, operate on blockchain networks, and cannot be shut down by a single authority.
Are DApps completely decentralized?
While DApps run on decentralized blockchains, some still rely on centralized components like front-end interfaces or hosting services.